A Comprehensive Guide to Shopping Loans for Smart Purchases

Everyone needs to make essential purchases or upgrades once in a while. This can include buying a new car, replacing an old air conditioner, or buying a new laptop. Obtaining an online loan for shopping can help you make important purchases. A thorough understanding of shopping loans will help you understand how they can be useful when making big and important purchases. Let’s explore what are shopping loans and understand their perks and other essential aspects.

A shopping loan is a type of personal loan used to fulfil important or urgent shopping needs. It's an unsecured loan, so you don't need to offer any security. You can use the loan for both in-store and online shopping.

To get a shopping loan, you'll need essential documents like your PAN or Aadhar card for proof of identity. You'll also need proof of income, such as a three-month bank statement and a two-month pay slip. 

If you need to finance your shopping expenses, applying for a loan for low salary is a better choice than breaking down the fixed deposit. Read on to find out why consider shopping loans for making smart purchases:

• Faster Approval: Personal loans generally get approval quicker. This option will be helpful when you are facing a budget constraint but need to make some essential purchases. 

• Highly Convenient: Shopping loans are primarily available online. Thus, you can easily apply for one and complete the entire process from home.

• Preserving Your Savings: You can keep your savings for emergencies while choosing a shopping loan for your big purchases.

• High Flexibility: Shopping loans give you much flexibility regarding repayment options. You can choose the repayment plan that best suits your budget and financial goals.

• No Need for Collateral/Guarantee: Since it is an unsecured loan, you do not need any collateral or guarantee to take a personal loan for shopping.

• Affordability: Shopping loans help you pay for expensive items over time. Instead of paying all at once, you can pay in smaller, manageable amounts, making it easier to make big purchases.

• Better Interest Rate: Compared to credit cards, personal loans offer better interest rates and are cheaper. 

Understanding the eligibility criteria is essential to know if you qualify for shopping loans. So, to help you answer “who qualifies for shopping loans”, here is a list of criteria you should follow:

• The individual has to be an Indian citizen.
• Be a full-time employee in the government or private sector.
• Have a minimum of 6 months overall work experience and 3 months of experience in the current organisation.
• The individual should receive a salary in a proper bank account.
• Your monthly salary needs to be at least over 30,000 (this will vary from one lender to another).

Let’s take a look at how you may use a personal loan for shopping without risking overspending:

• Shop Only for Essentials

The best way to stay in control is to have an actionable budget plan to help you understand how much you can safely spend on extra indulgences. 

• Spend Only What you Have Borrowed

It is wise to spend only the borrowed amount to prevent blown budget plans. So, no matter how tempting items you come across while shopping, be financially responsible and avoid splurging on unnecessary items.

• Get the Best Deals

If you are shopping during the holidays or festive season, you will find plenty of festive and holiday deals. You will spend less, pay a lower interest rate, and repay your loan sooner.

• Get Yourself a Personal Loan Contingency Plan

A personal loan contingency plan is one of the best ways to use a shopping loan. It will keep your finances in check and ensure you don’t get an extra bill once the repayment date arrives.

Shopping loans can be a great way of financing expensive items. Before you look for the perfect and convenient gaming console or gift for your children, planning and acquiring a cash loan online with low-interest rates that suit your requirements is best. While carrying out your financial preparation, you can shop without any stress. Go debt-free during holiday seasons by getting a low-interest loan to shop from mPokket. They even provide excellent loan options for individuals with low salaries. However, you must use the money wisely and avoid frivolous shopping. Thoughtful planning and diligent budgeting will promote good financial health.